CMS has advised PKN Orlen on an investment in a new metathesis unit for the production of polymer-grade propylene. It will enable propylene production capacity at PKN Orlen’s plant in Płock to increase by about 100,000 tonnes a year, to a level of 550,000 tonnes.
This investment is now entering the implementation phase. Its value is estimated at PLN 400m.
“Our objective is to effectively diversify revenue sources and strengthen the efficiency of the Orlen Group’s Downstream Segment. We want to maximise capacity utilisation in Poland and the Czech Republic, and push for greater integration between petrochemical and refining areas, which will give us the flexibility required to respond to market changes in demand for fuels and petrochemicals. We will focus on products with a broad range of applications in the plastics industry, because the industry’s purchasing power is growing and its medium-term prospects point to a steadily upward trend,” says Wojciech Jasiński, President of the Management Board of PKN Orlen.
“In this type of investment contract it is crucial to properly allocate tasks, responsibilities and risks between the investor and the contractor, as well as precisely define the scope of the contractor’s work, so as to avoid potential disputes when the contract is carried out,” adds Iga Lis, partner in the Energy Projects Department at CMS.
CMS’ work included preparation of the contract for the design, supply and construction of a “turnkey” metathesis unit and representation of PKN Orlen in negotiations with potential contractors.
Partners Tomasz Minkiewicz, Karolina Siedlik and Iga Lis, as well as senior associate Maciej Ziółkowski made up the team from CMS Warsaw’s Energy and Projects Department.